A breakthrough in Arab-Israeli relations came
four years later when Egyptian President Anwar Sadat made an unprecedented, historic visit
to Israel in November 1977 and addressed the Israeli people with
words of reconciliation and peace. His visit marked the first time an Arab leader made
significant overtures to the people of Israel. Egyptian-Israeli negotiations ensued and in
March 1979, Israel and Egypt signed a formal peace treaty. In return for peace, Israel
relinquished to Egypt the Sinai peninsula, gained during the 1967 war.

At the same time, there was no progress on other
Arab fronts. The PLO, for example, relentlessly continued its campaign of terrorist
warfare against innocent Israelis and civilians worldwide. In one of its more brutal
atrocities, the PLO attacked schoolchildren in Ma'alot in northern Israel in May 1974,
resulting in the deaths of 21 children.